Hobbs - 4:54 pm on Jan 18, 2006 (gmt 0)
They do not need traffic to make it big, they only need to pay publishers more, attract advertisers...
Google is already paying nearly 80% of its AdSense revenues to partners. It's hard to see MSN being able to improve on that for any length of time
You know it is never as black and white as who will pay that extra 1 or 2% and get the advertisers, there is not one publisher here that will not jump onto a good opportunity to diversify the earnings, even if MSN and Yahoo pay 5% less, they can still make it up with improvements in formats, relevancy and quality advertisers (as you said), which could put them at par if not ahead of Google earnings wise, they will get the real estate space from good and bad publishers (AS rejects) alike, most publishers will diversify, even at the price of less earnings, it is then up to each network to differentiate itself and gain room a publisher per site percentage game.
btw I think there is a consensus here that 80% is only a special case for few publishers.